Answer:

Introduction:

The Direct Benefit Transfer (DBT) Scheme is an initiative by the Indian government aimed at reforming the government delivery system by transferring subsidies and benefits directly into the bank accounts of eligible beneficiaries. This system aims to enhance transparency, reduce corruption, and improve the efficiency of welfare programs. While the DBT scheme is a progressive step, it also has certain limitations.

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Advantages of the DBT Scheme:

• Transparency and efficiency: By transferring benefits directly into beneficiaries’ bank accounts, the DBT scheme bypasses intermediaries, reducing leakages and corruption. For example, Direct benefit transfer to bank accounts of beneficiaries ensures transparency and reduces leakages.
• Empowerment: The DBT scheme empowers beneficiaries by giving them more control over their entitlements. For example, PM Ujjwala Scheme has encouraged women’s empowerment by promoting access to clean cooking fuel, reducing their exposure to harmful fumes, and freeing up their time spent on gathering fuel.
• Financial inclusion: The DBT scheme encourages beneficiaries to open bank accounts and engage with the formal financial system, promoting financial inclusion and increasing access to credit and other financial services.
• Monitoring and evaluation: The DBT scheme enables the government to track the disbursement of benefits, facilitating better monitoring and evaluation of welfare programs.

Farmers, being the backbone of the Indian economy, receive a variety of subsidies from the government.

• One such initiative is the PM-KISAN scheme, which provides income support to all landholding farmer families across the country to enable them to take care of expenses related to agriculture and allied activities as well as domestic needs.
• Under the scheme, farmers receive Rs 6,000 per year in three equal installments directly into their bank accounts. This direct transfer of benefits has helped farmers invest in necessary agricultural inputs, such as seeds, fertilizers, and equipment, in a timely manner.

Limitations of the DBT Scheme:

• Digital divide: In many rural areas, internet penetration is still low, and digital literacy is limited. This may exclude some beneficiaries from accessing their entitlements, particularly the elderly, persons with disabilities, and those with limited access to digital resources. For example, there is Limited coverage of the National Health Insurance Scheme in some areas due to lack of awareness, identification of beneficiaries, and connectivity issues.
• Banking infrastructure: Inadequate banking infrastructure may hinder the timely disbursement of benefits and create difficulties for beneficiaries in accessing their funds.
• Identification and targeting: Errors in identification or exclusion of deserving beneficiaries can undermine the scheme’s effectiveness and lead to grievances.
• Administrative capacity: Limited administrative capacity can lead to delays in processing, disbursement, and redressal of grievances.

Conclusion:

To maximize the benefits of the DBT scheme, it is essential to address these limitations and ensure that the system is inclusive, accessible, and efficient for all beneficiaries.

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